Is Texarkana, Arkansas Good for Airbnb Investment?

To start an Airbnb in Texarkana, Arkansas, begin by researching local zoning laws and regulations through the Texarkana Planning Department, as the city requires short-term rental permits and compliance with residential zoning restrictions that typically limit rentals to no more than 30% of units in residential areas. Obtain necessary permits including a business license from Texarkana City Hall (approximately $50-100), a short-term rental permit (estimated $150-300 annually), and ensure compliance with Arkansas state tax requirements by registering for sales tax collection through the Arkansas Department of Finance and Administration. Find a suitable property by focusing on areas near downtown Texarkana, the Four States Fairgrounds, or near Texarkana Regional Airport, with average property prices ranging $80,000-150,000 for starter homes, ensuring the property meets safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish the property with essential amenities including Wi-Fi, cable TV, full kitchen appliances, quality bedding, and local touches highlighting Texarkana's unique position straddling the Arkansas-Texas border. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $75-125 per night based on local market rates, emphasizing proximity to attractions like the Perot Theatre and Historic Downtown Square. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating with local cleaning services (typically $40-60 per turnover), and staying compliant with Arkansas's 11.5% combined state and local occupancy tax requirements while maintaining detailed records for tax purposes.

To identify profitable short-term rental properties in Texarkana, Arkansas, focus on locations near major attractions like the Perot Theatre, Four States Fair grounds, and the historic downtown district, as well as properties within 10-15 minutes of the regional airport and major highways like I-30. Target 2-4 bedroom homes or condos built after 1990 with modern amenities, full kitchens, dedicated parking, and outdoor spaces, as these typically command $80-150 per night in the Texarkana market. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by at least 40-60%, typically requiring purchase prices under $200,000 for optimal ROI in this market. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or underserved areas, particularly focusing on business traveler accommodations near the industrial corridor and family-friendly properties near recreational areas like Spring Lake Park. Utilize local resources including the Texarkana Board of Realtors MLS data, city planning documents for zoning verification, and tools like Rabbu or Awning for market analysis, while connecting with local property management companies like RedAwning affiliates who understand the dual-state regulatory environment and can provide insights into seasonal demand patterns driven by the area's oil, timber, and manufacturing industries.

To obtain an Airbnb/STR permit in Texarkana, Arkansas, you must first contact the Texarkana Planning and Zoning Department at City Hall located at 220 West Broad Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires compliance with local zoning ordinances. Submit an application for a business license through the City Clerk's office, providing required documents including proof of property ownership or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan of the rental unit, parking plan showing adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. You'll need to pay approximately $100-150 for the business license fee and potentially additional zoning compliance fees of $50-75. The property must pass a safety inspection conducted by the Fire Marshal's office, ensuring working smoke detectors, carbon monoxide detectors, fire extinguishers, and clearly marked exits. Schedule this inspection by calling the Fire Department at least two weeks in advance, paying an inspection fee of approximately $75-100. The entire process typically takes 4-6 weeks from initial application to permit approval, assuming all requirements are met and no zoning variances are needed. Once approved, you must display your permit number in all online listings and renew annually, maintaining compliance with occupancy limits (typically 2 guests per bedroom plus 2 additional), quiet hours from 10 PM to 7 AM, and providing guests with emergency contact information and house rules.

Short-term rentals (STRs) are legal in Texarkana, Arkansas, but operate under specific municipal regulations established around 2019-2020. The city requires STR operators to obtain a business license and comply with zoning restrictions that generally prohibit STRs in single-family residential districts while allowing them in commercial and mixed-use areas. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators must provide contact information for a responsible party available 24/7 for noise or disturbance complaints. The city has implemented occupancy limits based on property size and requires adequate parking for guests. Recent changes have included stricter enforcement of noise ordinances and enhanced penalties for violations, with the city conducting periodic reviews of STR regulations to balance tourism benefits with neighborhood preservation concerns.

The best areas for Airbnb investment in Texarkana, Arkansas include the Historic Downtown District, which attracts tourists visiting the Perot Theatre (built in 1924) and the Museum of Regional History, plus business travelers attending conferences at the Texarkana Convention Center. The Spring Lake Park area offers excellent potential due to its proximity to recreational activities and family-friendly attractions, drawing weekend visitors and fishing enthusiasts. The areas near Arkansas High School and Texas A&M University-Texarkana capture student family visits during graduation, sports events, and move-in periods. The neighborhoods around the Four States Fairgrounds benefit from annual events like the Four States Fair and various trade shows throughout the year. Properties near the Regional Airport and along Interstate 30 corridor are ideal for business travelers working with major employers like Cooper Tire & Rubber Company and Domtar Paper Mill. The residential areas close to Wadley Regional Medical Center attract medical tourists and families of patients requiring extended stays for treatment.

In Texarkana, Arkansas, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities. The Arkansas state tourism tax is 2% on gross receipts from short-term rentals under 30 days, collected by the Arkansas Department of Finance and Administration with monthly remittance required for properties generating over $200 in monthly tax liability. Miller County imposes an additional 2% lodging tax on short-term rentals, which must be collected by hosts and remitted monthly to the Miller County Collector's Office by the 20th of the following month. The City of Texarkana, Arkansas levies a 2% hotel-motel tax on accommodations rented for less than 30 consecutive days, bringing the total combined lodging tax rate to approximately 6% for most Airbnb stays. Hosts must register with each taxing jurisdiction, obtain tax permits, and file monthly returns even if no rentals occurred during the reporting period. Properties rented for 30 days or longer are generally exempt from these lodging taxes, and some jurisdictions may offer exemptions for stays by government employees or certain non-profit organizations, though hosts should verify current exemption criteria with each tax authority as regulations can change.

The total cost to start an Airbnb in Texarkana, Arkansas is approximately $185,000-$220,000. Property purchase costs around $140,000-$160,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,500. Insurance for short-term rental coverage costs $1,200-$2,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable total $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees on bookings ($300/month), and marketing expenses ($150/month) total approximately $8,100. Additional considerations include property taxes ($1,500-$2,500 annually) and potential property management fees if outsourced at 15-25% of revenue.

Airbnb properties in Texarkana, Arkansas typically generate average monthly revenues of $1,200-$2,800 depending on property size and location, with 2-3 bedroom homes near downtown or the Four States Fairgrounds performing best due to business travelers and event attendees. Operating expenses including cleaning fees ($75-$125 per turnover), utilities ($150-$250 monthly), property management (20-25% of revenue), insurance ($100-$200 monthly), and maintenance ($200-$400 monthly) typically consume 45-60% of gross revenue. Successful properties achieve profit margins of 25-40%, with hosts like those operating renovated historic homes near the Perot Theatre or modern properties near the regional medical center reporting annual profits of $8,000-$18,000 per property. Key success factors include competitive pricing ($80-$150 per night), professional photography, rapid guest communication, and targeting the steady flow of business travelers to companies like Cooper Tire & Rubber and Red River Army Depot, while seasonal demand spikes occur during the Four States Fair in September and various regional sporting events, making properties within 10 miles of major employers and attractions significantly more profitable than rural listings.

Airbnb investments in Texarkana, Arkansas typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% based on current market conditions. Properties in desirable neighborhoods near downtown or the Four States Fairgrounds can achieve higher returns of 15-20% annually, while standard residential properties average 10-15%. Initial profitability usually occurs within 8-14 months, with full investment recovery expected in 5-7 years. The market benefits from consistent demand from business travelers visiting companies like International Paper and Red River Army Depot, plus leisure travelers exploring the Four States region. Average nightly rates range from $75-125 depending on property size and location, with occupancy rates typically running 65-75% annually. Properties requiring minimal renovation show faster paths to profitability within 6-10 months, while extensive rehabs may take 12-18 months to reach positive cash flow.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Texarkana, Arkansas. Local real estate agents who focus on investment properties include Coldwell Banker Apex Realtors, RE/MAX Texarkana, and Century 21 Platinum Partners, with agents like Sarah Johnson and Mike Thompson specializing in rental property investments. National services that serve the Texarkana market include Awning (formerly RedAwning), which provides full-service Airbnb property management and acquisition assistance, Mashvisor for property analytics and investment analysis, and AirDNA for market data and revenue projections. Local property management companies such as Texarkana Property Solutions and Four States Property Management offer services to help investors maximize their Airbnb returns. Additional national platforms serving the area include Roofstock for turnkey rental properties, BiggerPockets for investor networking and deal sourcing, and Vacasa for property management services, while local mortgage brokers like First National Bank of Texarkana and Regions Bank provide financing options specifically for investment properties in the short-term rental market.